Eni SPA agreed to buy French power group GDF Suez’s 22.5% interest in a joint venture between GDF Suez and Total E&P UK Ltd. The joint venture, Elgin Franklin Oil & Gas Ltd., holds a 46.2% stake in Elgin-Franklin fields in UK’s North Sea (OGJ Online, Nov. 30. 2010).
Through this acquisition, Eni will obtain a 10.4% indirect participation in Elgin-Franklin gas-condensate fields for €590 million. Subject to certain conditions, Eni’s acquisition from GDF Suez is expected to close by yearend.
Before the announcement with GDF Suez, Eni already held 21.8% interest in Elgin-Franklin fields.
The acquisition provides Eni with short- and long-term production benefits from UK North Sea assets already are well known to the company. During 2009, Eni produced 104,000 boed from UK North Sea operations.